Correlation Between BioAffinity Technologies, and Frequency Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies, and Frequency Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BioAffinity Technologies, and Frequency Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bioAffinity Technologies, and Frequency Therapeutics, you can compare the effects of market volatilities on BioAffinity Technologies, and Frequency Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BioAffinity Technologies, with a short position of Frequency Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies, and Frequency Therapeutics.
Diversification Opportunities for BioAffinity Technologies, and Frequency Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BioAffinity and Frequency is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies, and Frequency Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Therapeutics and BioAffinity Technologies, is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on bioAffinity Technologies, are associated (or correlated) with Frequency Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Therapeutics has no effect on the direction of BioAffinity Technologies, i.e., BioAffinity Technologies, and Frequency Therapeutics go up and down completely randomly.
Pair Corralation between BioAffinity Technologies, and Frequency Therapeutics
Given the investment horizon of 90 days bioAffinity Technologies, is expected to under-perform the Frequency Therapeutics. In addition to that, BioAffinity Technologies, is 1.48 times more volatile than Frequency Therapeutics. It trades about -0.16 of its total potential returns per unit of risk. Frequency Therapeutics is currently generating about -0.21 per unit of volatility. If you would invest 4,102 in Frequency Therapeutics on November 3, 2024 and sell it today you would lose (690.00) from holding Frequency Therapeutics or give up 16.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
bioAffinity Technologies, vs. Frequency Therapeutics
Performance |
| Timeline |
| bioAffinity Technologies, |
| Frequency Therapeutics |
BioAffinity Technologies, and Frequency Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies, and Frequency Therapeutics
The main advantage of trading using opposite BioAffinity Technologies, and Frequency Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies, position performs unexpectedly, Frequency Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Frequency Therapeutics will offset losses from the drop in Frequency Therapeutics' long position.| BioAffinity Technologies, vs. Intelligent Bio Solutions | BioAffinity Technologies, vs. T2 Biosystms | BioAffinity Technologies, vs. Precipio |
| Frequency Therapeutics vs. Chemours Co | Frequency Therapeutics vs. Sable Offshore Corp | Frequency Therapeutics vs. Energold Drilling Corp | Frequency Therapeutics vs. Eastman Chemical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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